Wednesday, August 14, 2019

Small Business Administration offering flash flood disaster relief loans - WTAE Pittsburgh

Small Business Administration offering flash flood disaster relief loans - WTAE Pittsburgh


Small Business Administration offering flash flood disaster relief loans - WTAE Pittsburgh

Posted: 14 Aug 2019 02:56 PM PDT

OFFERED. THREE AND A HALF WEEKS AGO A FLASH FLOOD AMBUSHED SEVERAL BUSINESSES IN PLUM AND OTHER MUNICIPALITIES. TODAY LINGERING FRUSTRATION LINGERS DISASTER RELIEF LOANS OFFERED TO BUSINESS OWNERS BY THE SMALL BUSINESS ADMINISTRATION. >> YOU HAVE TO SECURE THE LOAN WITH YOUR PERSONAL ASSETS AND I WASN'T WILLING TO DO THAT. >> STEVE PARCO IS ONE OF THE BUSINESS OWNERS TO WALK AWAY FROM THE TERMS OFFERED IN THE SBA LOANS. HERE IS WHY. 4% INTEREST LOANS FOR BUSINESS OWNERS WITH NO CREDIT OR BAD CREDIT. BUT 8% INTEREST IS OFFERED TO BUSINESSES WITH ESTABLISHED CREDIT. >> THOSE WHO ARE GETTING THAT HIGHER RATE, THAT 8% THAT YOU MENTIONED, IT'S BASICALLY YES BECAUSE WE DON'T WANT TO UNDERCUT THE BANKS. THE SBA IS NOT IN COMPETITION WITH THE PRIVATE SECTOR. >> AND THERE'S MORE. SBA LOANS REQUIRE APPLICANTS TO PUT UP COLLATERAL OF AT LEAST $25,000. IN MANY CASES BUSINESS OWNERS HAVE TO PUT UP THEIR OWN HOMES FOR COLLATERAL ON A BUSINESS LOAN. >> I DIDN'T WANT TO TIE UP MY PERSONAL ASSETS INTO ANYTHING. >> A LOT PEOPLE HAVE PROBLEMS WITH THAT ARRANGEMENT, OF PUTTING UP PERSONAL COLLATERAL FOR THEIR BUSINESS. DO YOU UNDERSTAND THAT FRUSTRATION? >> I CAN UNDERSTAND AND WE'RE DEFINITELY WILLING TO TALK ABOUT IT. >> BUT YOU'RE NOT WILLING TO CHANGE IT? >> CONGRESS HAS SET IT UP LIKE THAT. >> HOWEVER, THE SBA SAYS ITS LOANS DO NOT COME WITH FEES FOUND IN TRADITIONAL LOANS. >> NO LOAN CLOSING COSTS. NO LOAN APPLICATION FEES. AND IF HE OR SHE CHOOSES, THEY CAN HAVE UP TO FOUR MONTHS OF A DEFERREL. >> THE SBA ALSO TELLS US THEY WILL REMAIN AT THE VOLUNTEER FIRE DEPARTMENT IN PLUM TO RECEIVE APPLICATIONS UP UNTIL TUESDAY OF NEXT WEEK.

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Small Business Administration offering flash flood disaster relief loans

Homeowners, business owners and nonprofits hit hard by July 21 flash flood in can apply

Agents with the Small Business Administration are set up at the Renton Volunteer Fire Department to take applications for disaster relief loans.Homeowners, business owners and nonprofits hit hard by the July 21 flash flood in Allegheny, Armstrong, Beaver, Butler, Washington and Westmoreland counties can apply in person until 5 p.m. Tuesday, August 2o.Loans are offered at 4% and 8% interest for business owners. However, collateral of at least $25,000 must be used to secure loans, in many cases requiring businesses owners to put up their own personal assets, a deal they're not willing to make."I didn't want to tie up my personal assets into anything," says Steve Parco, owner of Allegheny County Customs, an auto body shop on Rodi Road in Penn Hills.However, the SBA says its loans do not come with fees found in traditional loans. There are "no loan closing costs" says SBA spokesperson Tamin Choudhury. "No loan application fees. And if he or she chooses, they can have up to four months of a deferral."The Renton Volunteer Fire Department is located in the Plum Municipal Complex at 1996 Old Mine Road.

Agents with the Small Business Administration are set up at the Renton Volunteer Fire Department to take applications for disaster relief loans.

Homeowners, business owners and nonprofits hit hard by the July 21 flash flood in Allegheny, Armstrong, Beaver, Butler, Washington and Westmoreland counties can apply in person until 5 p.m. Tuesday, August 2o.

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Loans are offered at 4% and 8% interest for business owners. However, collateral of at least $25,000 must be used to secure loans, in many cases requiring businesses owners to put up their own personal assets, a deal they're not willing to make.

"I didn't want to tie up my personal assets into anything," says Steve Parco, owner of Allegheny County Customs, an auto body shop on Rodi Road in Penn Hills.

However, the SBA says its loans do not come with fees found in traditional loans. There are "no loan closing costs" says SBA spokesperson Tamin Choudhury.

"No loan application fees. And if he or she chooses, they can have up to four months of a deferral."

The Renton Volunteer Fire Department is located in the Plum Municipal Complex at 1996 Old Mine Road.

U.S. Small Business Administration - Disaster Loans for Businesses, Private Nonprofits, Homeowners and Renters - Forks Forum

Posted: 14 Aug 2019 01:30 AM PDT

SBA Disaster News Release – SBA Economic Injury Disaster Loans Available to Washington Small Businesses

Small nonfarm businesses in 15 Washington counties and neighboring counties in Oregon are now eligible to apply for low‑interest federal disaster loans from the U.S. Small Business Administration, announced Director Tanya N. Garfield of SBA's Disaster Field Operations Center-West. These loans offset economic losses because of reduced revenues caused by drought in the following primary counties that began June 4, 2019.

Primary Washington counties: Clallam, Cowlitz, Grays Harbor, Jefferson, Lewis, Mason, Pacific, Thurston and Wahkiakum;

Neighboring Washington counties: Clark, Kitsap, Pierce, Skamania, Yakima and Island;

Neighboring Oregon counties: Clatsop and Columbia.

"SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster," Garfield said.

Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

"Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for businesses and 2.75 percent for private nonprofit organizations, a maximum term of 30 years and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship," Garfield said.

By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on Aug. 2, 2019.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary's declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The deadline to apply for economic injury is April 2, 2020.

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